Is Bovada Legal? State-By-State Guide

Is Bovada Legal? State-By-State Guide

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It’s been a few years since the U.S. Supreme Court repealed the Professional and Amateur Sports Protection Act (PASPA)—a federal ban on sports betting nationwide, besides a few states. PASPA's abolition opened the floodgates for online sports betting, with a flurry of states (30+ currently) legalizing the activity ever since.

Offshore sportsbooks already had a foothold in the U.S. market before PASPA’s repeal, giving them an edge in the ensuing sports betting gold rush. Overseas betting operators have been offering services to American players since the early 2000s and have built up a strong following over the years.

Bovada is the most recognizable brand among U.S. offshore books. It still holds a significant market share and is a go-to platform in states without legalized online betting. Unlike domestic licensed sites such as BetMGM, PointsBet, and FanDuel, Bovada is based in Latin America and does not fall under U.S. regulatory oversight.

By targeting U.S.-based players, Bovada violates the Wire Act, a six-decade-old federal law that criminalizes interstate sports betting. The reason why Bovada is able to skirt the law and operate in the States is that the American government has little to no jurisdiction over foreign companies.

By law, Bovada is illegal in the United States. However, it is still possible to play in most states, though bettors should be wary of using the platform and other unlicensed sites operating in regulatory limbo.

If you're in a state with legal sports betting, you can compare our picks for the best legal sports betting sites here. 

Also, most states allow DFS sites since these are technically a game of skill. You can compare the best DFS sites and apps here, many of which allow picks on player stats against the house, much like player prop parlays in sports betting.

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It was not that long ago that the Department of Justice shut down three major poker sites in an event dubbed “Black Friday.” Millions of dollars in player funds were lost in the raid, serving as a cautionary tale to bettors interested in playing at unregulated sportsbooks.

Unsuspecting U.S. bettors frequently misunderstand the legal status of offshore sites like Bovada. These conundrums primarily stem from the ambiguous language in gambling-related statutes and vague definitions of their application. Here, we’ll clear up any confusion regarding Bovada’s legality and provide a state-by-state rundown of the laws governing offshore betting.

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States Where You Can Use Bovada Even Though It Isn’t Legal

Since Bovada operates in a gray area, it has a wider reach than any regulated U.S. sportsbook. Players from most states can access Bovada except for Delaware, New Jersey, New York, Maryland, and Nevada.

While Bovada accepts registrations from players in 45 states, that doesn't mean it’s legal there. In fact, it's quite the opposite—the company breaks both the Wire Act and the Unlawful Internet Gaming Enforcement Act by accepting bets from abroad and processing illegal transactions.

Below is the breakdown of Bovada’s legal status for each state:

Is Bovada Legal? The Long Answer

The current status of offshore betting is rather complex, with the two principal gambling laws addressing the topic both outdated and vague. For this reason, offshore books like Bovada are often misconstrued as legal and/or secure.

Two main pieces of legislation curtail offshore gambling directly or indirectly: the Wire Act of 1961 and the Unlawful Internet Gambling Enforcement Act of 2006.

Wire Act

U.S. Attorney General Robert F. Kennedy introduced the Wire Act in 1961. The legislation sought to curb illegal bookmaking. Specifically, wire communications were targeted as a means of placing bets between states. Here’s an excerpt from the law:

“Whoever being engaged in the business of betting or wagering knowingly uses a wire communication facility for the transmission in interstate or foreign commerce of bets or wagers or information assisting in the placing of bets or wagers on any sporting event or contest, or for the transmission of a wire communication which entitles the recipient to receive money or credit as a result of bets or wagers, or for information assisting in the placing of bets or wagers, shall be fined under this title or imprisoned not more than two years, or both.”

For many years, there have been debates about the scope of the Wire Act. Proponents of illegal (offshore) online gambling argued that the law doesn’t apply to modern gambling because it prohibits only transmission via telegraph and telephone, not via satellite and, by extension, the internet. Additionally, there were several disputes over whether the Act applied only to sports betting or to all forms of online gambling.

According to the Department of Justice (DOJ), the intent of the Wire Act in the early 2000s was to cover all forms of online gambling. However, in 2011, Assistant Attorney General Virginia A. Seitz issued a memorandum stating that the Wire Act only applies to sports betting.

In January 2019, the DOJ once again took the position that the act encompasses all forms of gambling over the internet, overturning the 2011 memorandum. A U.S. district judge overturned the expanded prohibition a few months later, ruling that the Wire Act only applies to sports betting.

Despite its questionable effectiveness, the Wire Act is still one of the most significant federal gambling laws. It bans the transmission of interstate bets, which means that all wagers made at offshore books like Bovada are illegal. The law does not apply to individual bettors but rather to businesses (read offshore gambling companies).

UIGEA

The second major law that tackles offshore betting is the Unlawful Internet Enforcement Act, which took effect in 2006. It prohibits financial institutions from processing payments to non-regulated gambling sites, which includes offshore sportsbooks like Bovada.

The legislation does not forbid gambling on offshore sites per se. It indirectly targets payment processors, thus preventing players from funding their accounts with credit cards, wire transfers, ACH payment systems, and checks.

In the aftermath of the UIGEA, many banks and wire transfer companies backed down due to the fear of criminal charges. As a result, they stayed away from offshore gambling transactions. In 2008, the Department of Treasury and the Federal Reserve Board issued a joint final rule requiring all payment systems to identify and block restricted transactions.

As a means of circumventing the UIGEA, offshore operators have started offering cryptocurrencies and e-wallets for deposits and withdrawals. Even though you may be able to fund your account using these alternative methods, withdrawing funds from an offshore sportsbook to an American bank would undoubtedly raise eyebrows and possibly lead to legal troubles.

Black Friday

Offshore operators were heavily affected by the UIGEA. Some brands have resorted to using e-wallet providers like Cash App and Venmo as a workaround. These payment processors serve as an intermediary between a gambling service provider and a financial institution, so UIGEA-regulated banks do not process payments directly.

Several publicly traded operators discontinued their U.S. operations after the UIGEA was passed. One example was PartyGaming (now owned by Entain and operating legally in New Jersey), the largest poker room in 2006. PartyGaming's stocks tumbled 70% after leaving the U.S. market.

The third group of offshore operators established fictitious companies to conceal their incomes. This led to the infamous Black Friday scandal involving three of the largest online poker operators at the time—PokerStars, Full Tilt Poker, and Absolute Poker.

The executives of these sites were charged with money laundering, illegal gambling, and bank fraud. Consequently, the DOJ seized the assets of the accused brands and froze more than 70 financial accounts, preventing players from withdrawing their funds. So far, only PokerStars has repaid its customers.

Black Friday scenarios involving offshore sportsbooks like Bovada are unlikely but not impossible.

Is Bovada Safe?

Not quite. It looks like Bovada is generally paying its winners, but some users have reported stalled payouts on Reddit and other betting forums.

Furthermore, Bovada has faced a number of legal issues throughout its turbulent history. Calvin Ayre and three other Bodog (Bovada's predecessor) executives were charged in 2012 with illegal gambling and money laundering. Eventually, Bodog retreated from the United States and changed ownership. The Bovada brand was created as an offshoot for the U.S. market while Bodog left the country permanently.

Aside from its questionable reputation, Bovada offers little to no consumer protection. If you have a dispute with the company, you won't have anyone to turn to for resolution. Since offshore operators report to no U.S. authorities, you won’t receive protection.

Last but not least, the federal government may decide to pursue offshore operators at any moment, and who says you won't lose your money in the process?

>> Want to See Legal & Licensed Options? Check Out Our Best Online Sportsbooks Guide

Dave Rathmanner

Dave Rathmanner is the Founder & CEO of Odds Assist. After struggling to find helpful sports betting resources and honest reviews when he first started betting, he decided to create the site he always wished he had. Dave has been betting on sports since NJ legalized it in 2018 and regularly analyzes sportsbooks to find the best options for bettors. Aside from creating new content for OA readers, Dave is also passionate about researching betting markets, creating models, and developing profitable betting strategies.